SCHOOL OF SCIENCE, RK UNIVERSITY

AN INDUSTRIAL PROFILE REPORT

ON FMCG COMPANY
NESTLE INDIA LTD.

SUBMITTED FOR
PARTIAL FULFILLMENT OF
CAMPUS TO CORPORATE TRAINING
(CD 001) BY:
1. BHALALA HEMANSHI (17 SOSMB 11017)
2. BORAD HIMALI (17 SOSMB 11034)
3. DANGAR ANJU (17 SOSMB 11050)
4. JATAPARA MAYUR (17 SOSMB 11098)
5. LIMBASIYA PRIYANSHI (17 SOSMB 11129)

SUBMITTED TO:

TRAINING AND PLACEMENT CELL, RK UNIVERSITY - RAJKOT

 CERTIFICATE

6. This is to certify that the report entitled “AN INDUSTRIAL PROFILE REPORT ON FMCG
COMPANY – NESTLE INDIA LTD.” has been submitted by BHALALA HEMANSHI (17
SOSMB 11017) , BORAD HIMALI ( 17 SOSMB 11034), DANGAR ANJU (17 SOSMB
11050), JATAPARA MAYUR (17 SOSMB 11098) and LIMBASIYA PRIYANSHI (17
SOSMB 11129) under my guidance in fulfillment of the subject named Campus To Corporate
Training (CD 001) offered by Training and Placement Cell to School of Science, RK
University during the academic year 2019-20.
Signature of Subject Faculty Signature of Subject In charge

DECLARATION

This Is To Declare That

1. The Industrial Profile Report Comprises Of My Original Work Towards The Subject Named
Campus To Corporate Training (CD 001) At School of Science, RK University, Rajkot And Has
Not Been Submitted Elsewhere.
2. Due Acknowledgement Has Been Made In The Text To All Other Materials Used.

BHALALA HEMANSHI
(17 SOSMB 11017)

BORAD HIMALI
(17 SOSMB 11034)

DANGAR ANJU
(17 SOSMB 11050)

JATAPARA MAYUR
(17 SOSMB 11098)

LIMBASIYA PRIYANSHI
(17 SOSMB 11129)
 ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my faculty (Prof. NIMESH DAVDA),
our Class Counselor (Prof. BANSURI GAMI), our Head of Department (Dr. VIJAY KUMAR)
as well as our Director (Dr. Mayank Pandya) who gave me the golden opportunity to do this
wonderful report on the topic (AN INDUSTRIAL PROFILE REPORT ON FMCG
COMPANY NESTLE INDIA LTD.), which also helped me in doing a lot of Research and i
came to know about so many new things I am really thankful to them.
Secondly i would also like to thank my parents and friends who helped me a lot in finalizing this
report within the limited time frame.
 ABSTRACT
NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government emphasized
the need for local production. NESTLÉ responded to India's aspirations by forming a company in
India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted
NESTLÉ to develop the milk economy. Progress in Moga required the introduction of
NESTLÉ's Agricultural Services to educate, advise and help the farmer in a variety of aspects.
From increasing the milk yield of their cows through improved dairy farming methods, to
irrigation, scientific crop management practices and helping with the procurement of bank loans.
NESTLÉ set up milk collection centres that would not only ensure prompt collection and pay fair
prices, but also instil amongst the community, a confidence in the dairy business. Progress
involved the creation of prosperity on an on-going and sustainable basis that has resulted in not
just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving
hub of industrial activity, as well.
NESTLÉ has been a partner in India's growth for over a century now and has built a very special
relationship of trust and commitment with the people of India. The Company's activities in India
have facilitated direct and indirect employment and provides livelihood to about one million
people including farmers, suppliers of packaging materials, services and other goods.
The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness
through its product offerings. The culture of innovation and renovation within the Company and
access to the NESTLÉ Group's proprietary technology/Brands expertise and the extensive
centralized Research and Development facilities gives it a distinct advantage in these efforts. It
helps the Company to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.
NESTLÉ India manufactures products of truly international quality under internationally famous
brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID
and NESTEA and in recent years the Company has also introduced products of daily
consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ
Jeera Raita.
NESTLÉ India is a responsible organization and facilitates initiatives that help to improve the
quality of life in the communities where it operates.

INDEX
Sr. No. Topic Name Pg. No.
1 Industry Overview
2 Size of Industry
3 Proportion of FDI in India
4 Contribution in GDP
5 Brief History
6 Regulatory Bodies
7 Major Player (Global / National / Local – 5 in Each)
8 Market Share of Company in Industry
9 Porter’s Five Forces Model
10 Recent Trends & Practices
11 Career Opportunities
12 References

1.Industry Overview
After more than a century-old association with the country, today, NESTLÉ India has presence
across India with 8 manufacturing facilities and 4 branch offices.

NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961 followed
by its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka),
in 1989; Samalkha (Haryana), in 1992; Ponda and Bicholim (Goa), in 1995 and 1997,
respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestlé India set up its 8th
manufacturing facility at Tahliwal (Himachal Pradesh).

The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the
sales and marketing activities. The NESTLÉ India’s Head Office is located in Gurgaon,
Haryana.

2.Size of Industry
Nestle has around 450 factories, operates in 86 countries, and employs around 328,000 people. It
is one of the main shareholders of L'Oreal, the world's largest cosmetics company. Nestle has a
primary listing on the SIX Swiss Exchange and is a element of the Swiss Market Index

Milk collection system of nestle milk pak is excellent. According to this system milk is collected
farmer area of about 72000 km.
Village milk center 2273
Sub centers 583
Main centers 23
From milk collection centers milk is collected and deliver to factory daily seal of tankers are
correctly decided. Receiving capacity of milk is 60000 liters.

3.Proportion of FDI in India

4.Contribution in GDP
 5.Brief History
1866–1900: Founding and early years
Henri Nestlé, a German-born Swiss confectioner, was the founder of Nestlé and one of the main
creators of condensed milk.

Nestlé's origins date back to the 1860s, when two separate Swiss enterprises were founded that
would later form the core of Nestlé. In the succeeding decades, the two competing enterprises
aggressively expanded their businesses throughout Europe and the United States.

In 1866, Charles Page (US consul to Switzerland) and George Page, brothers from Lee County,
Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland.
Their first British operation was opened at Chippenham, Wiltshire, in 1873.

In 1867, in Vevey, Henri Nestlé developed milk-based baby food and soon began marketing it.
The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk
chocolate manufacturing process. Nestlé was the crucial co-operation that Peter needed to solve
the problem of removing all the water from the milk added to his chocolate and thus preventing
the product from developing mildew. Henri Nestlé retired in 1875 but the company, under new
ownership, retained his name as Société Farine Lactée Henri Nestlé.

In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year, the
Nestlé Company added condensed milk to their portfolio, which made the firms direct and fierce
rivals.

In 1879, Nestlé merged with milk chocolate inventor Daniel Peter.

1901–1989: Mergers

Aleppo Nestle building Tilal street 1920s.

Certificate for 100 shares of the Nestlé and Anglo-Swiss Condensed Milk Co., issued 1.
November 1918

In 1904, François-Louis Cailler, Charles Amédée Kohler, Daniel Peter, and Henri Nestlé
participated in the creation and development of Swiss chocolate, marketing the first chocolate –
milk Nestlé.

In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947 when the name 'Nestlé Alimentana SA' was taken as a
result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding
company, Alimentana SA, of Kempttal, Switzerland. Maggi was a major manufacturer of soup
mixes and related foodstuffs. The company's current name was adopted in 1977. By the early
1900s, the company was operating factories in the United States, the United Kingdom, Germany,
and Spain. The First World War created demand for dairy products in the form of government
contracts, and, by the end of the war, Nestlé's production had more than doubled.
A 1915 advertisement for "Nestlés Food", an early infant formula

In January 1919, Nestlé bought two condensed milk plants in Oregon from the company
Geibisch and Joplin for $250,000. One was in Bandon, while the other was in Milwaukie. They
expanded them considerably, processing 250,000 pounds of condensed milk daily in the Bandon
plant.

The logo that Nestlé used from 1938 to 1966

Nestlé felt the effects of the Second World War immediately. Profits dropped from
US$20 million in 1938 to US$6 million in 1939. Factories were established in developing
countries, particularly in Latin America. Ironically, the war helped with the introduction of the
company's newest product, Nescafé ("Nestlé's Coffee"), which became a staple drink of the US
military. Nestlé's production and sales rose in the wartime economy.

After the war, government contracts dried up, and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing debt.
The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture becoming
the company's second most important activity. Louis Dapples was CEO till 1937 when
succeeded by Édouard Muller till his death in 1948.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated
and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a manufacturer of
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's
(1971), and Stouffer's (1973). Diversification came under Chairman & CEO Pierre Liotard-Vogt
with a shareholding in L'Oreal in 1974 and the acquisition of Alcon Laboratories Inc. in 1977 for
280 million dollars.

In the 1980s, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions. Carnation was acquired for $3 billion in 1984 and brought the evaporated milk
brand, as well as Coffee-Mate and Friskies to Nestlé. In 1986 Nestlé Nespresso S.A. was
founded. The confectionery company Rowntree Mackintosh was acquired in 1988 for
$4.5 billion, which brought brands such as Kit Kat, Smarties, and Aero.

1990–2011: Growth internationally

The first half of the 1990s proved to be favourable for Nestlé. Trade barriers crumbled, and
world markets developed into more or less integrated trading areas. Since 1996, there have been
various acquisitions, including San Pellegrino (1997), D'Onofrio (1997), Spillers Petfoods
(1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in
2002 – in June, Nestlé merged its US ice cream business into Dreyer's, and in August, a
US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the
same time-frame, Nestlé entered in a joint bid with Cadbury and came close to purchasing the
American company Hershey's, one of its fiercest confectionery competitors, but the deal
eventually fell through.
In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In
January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream
maker, with a 17.5% market share.[21] In July 2007, completing a deal announced the year before,
Nestlé acquired the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion,
also acquiring, the milk-flavoring product known as Ovaltine, the "Boost" and "Resource" lines
of nutritional supplements, and Optifast dieting products.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in
February 2007

In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for
US$5.5 billion.[23][24][25] In December 2007, Nestlé entered into a strategic partnership with a
Belgian chocolate maker, Pierre Marcolini.

Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was
to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world's
largest eye-care company.[27] On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's
North American frozen pizza business for US$3.7 billion.

Since 2010, Nestle has been working to transform itself into a nutrition, health and wellness
company in an effort to combat declining confectionery sales and the threat of expanding
government regulation of such foods. This effort is being led through the Nestlé Institute of
Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry
between food and pharmaceuticals" by creating foodstuffs with preventative and corrective
health properties that would replace pharmaceutical drugs from pill bottles. The Health Science
branch has already produced several products, such as drinks and protein shakes meant to
combat malnutrition, diabetes, digestive health, obesity, and other diseases.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about
US$1.7 billion. On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition,
formerly Wyeth Nutrition, unit for US$11.9 billion, topping a joint bid from Danone and Mead
Johnson.

2012–present: Recent developments

In recent years, Nestlé Health Science has made several acquisitions. It acquired Vitaflo, which
makes clinical nutritional products for people with genetic disorders; CM&D Pharma Ltd., a
company that specialises in the development of products for patients with chronic conditions like
kidney disease; and Prometheus Laboratories, a firm specialising in treatments for
gastrointestinal diseases and cancer. It also holds a minority stake in Vital Foods, a New
Zealand-based company that develops kiwifruit-based solutions for gastrointestinal conditions as
of 2012.
Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.
Nestlé sold the Jenny Craig business unit to North Castle Partners in 2013.[34] In February 2013,
Nestlé Health Science bought Pamlab, which makes medical foods based on L-methylfolate
targeting depression, diabetes, and memory loss.[35] In February 2014, Nestlé sold its PowerBar
sports nutrition business to Post Holdings, Inc.[36] Later, in November 2014, Nestlé announced
that it was exploring strategic options for its frozen food subsidiary, Davigel.
In December 2014, Nestlé announced that it was opening 10 skin care research centres
worldwide, deepening its investment in a faster-growing market for healthcare products. That
year, Nestlé spent about $350 million on dermatology research and development. The first of the
research hubs, Nestlé Skin Health Investigation, Education and Longevity Development
(SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and São Paulo,
and later others in North America, Asia, and Europe. The initiative is being launched in
partnership with the Global Coalition on Aging (GCOA), a consortium that includes companies
such as Intel and Bank of America.
Nestlé announced in January 2017 that it was relocating its US headquarters from Glendale,
California, to Rosslyn, Virginia outside of Washington, DC.
In March 2017, Nestlé announced that they will lower the sugar content in Kit Kat, Yorkie and
Aero chocolate bars by 10% by 2018. In July followed a similar announcement concerning the
reduction of sugar content in its breakfast cereals in the UK.
The company announced a $20.8 billion share buyback in June 2017, following the publication
of a letter written by Third Point Management founder Daniel S. Loeb, Nestlé's fourth-largest
stakeholder with a $3.5 billion stake, explaining how the firm should change its business
structure.[43] Consequently, the firm will reportedly focus investment on sectors such as coffee
and pet care and will seek acquisitions in the consumer health-care industry.
In September 2017, Nestlé S.A. acquired a majority stake of Blue Bottle.[44] While the deal's
financial details were not disclosed, the Financial Times reported "Nestle is understood to be
paying up to $500m for the 68 per cent stake in Blue Bottle". Blue Bottle expects to increase
sales by 70% this year.
In September 2017, Nestlé USA agreed to acquire Sweet Earth, a California-based producer of
plant-based foods, for an undisclosed sum.
In January 2018, Nestlé USA announced it is selling its US confectionary business to Ferrero, an
Italian chocolate and candy maker. The company was sold for a total of an estimated $2.8
billion.[48]
In May 2018, it was announced that Nestlé and Starbucks struck a $7.15 billion distribution deal,
which allows Nestlé to market, sell and distribute Starbucks coffee globally and to incorporate
the brand's coffee varieties into Nestlé's proprietary single-serve system, expanding the overseas
markets for both companies.
Nestle set a new profit target in September 2017 and agreed to offload over 20 of its US candy
brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, the share
price declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018
letter that the shifts are too small and too slow. In a statement, Nestle wrote that it was
"delivering results" and listed actions it had taken, including investing in key brands and its
global coffee partnership with Starbucks. However, activist investors disagreed, leading Third
Point Management to launch NestleNOW, a website to push its case with recommendations
calling for change, accusing Nestle of not being as fast, aggressive, or strategic as it needs to be.
Activist investors called for Nestle to divide into three units with distinct CEOs, regional
structures, and marketing heads - beverage, nutrition, and grocery; spin off more businesses that
do not fit its model such as ice cream, frozen foods, and confectionery; and add an outsider with
expertise in the food and beverage industry to the board.
In October 2018, Nestlé announced the launch of the Nestlé Alumni Network, through a strategic
partnership with SAP & EnterpriseAlumni, to engage with their over 1 million Alumni
globally.[52]
In September 2018, Nestlé announced to sell Gerber Life Insurance for $1.55 billion.

6.Regulatory Bodies
 7.Major Player
Nestle India Ltd, one the biggest players in FMCG segment, has a presence in milk & nutrition,
beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The company
is engaged in the food business. The food business incorporates product groups, such as milk
products and nutrition, beverages, prepared dishes and cooking aids, chocolates and
confectionery. Nestle India manufactures products under brand names, such as Nescafe, Maggi,
Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea.

The company has also introduced products of daily consumption and use, such as Nestle Milk,
Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company's brands
include milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates
and confectionery. Their milk products and nutrition includes Nestle Everyday Dairy Whitener,
Nestle Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages Include
Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino.
Nestle India is a subsidiary of Nestle S.A. of Switzerland

The company has presence across India with 8 manufacturing facilities and four branch offices
spread across the region. The four branch offices in the country help facilitate the sales and
marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The company's
head office is located in Gurgaon, Haryana.

Nestle India Ltd was incorporated in the year 1956. The company set up their first production
facility in the year 1961 at Moga in Punjab. In the year 1967, they set up their second plant at
Choladi in Tamil Nadu as a pilot plant to process the tea grown in the area into soluble tea. In the
year 1989, they set up a factory at Nanjangud in Karnataka.

In the year 1990, the company entered into the chocolate business by introducing Nestle
Premium Chocolate. In the year 1991, they entered in joint venture floated by the parent in
collaboration with BM Khaitan group to set up facilities to manufacturing a range of Soya based
products. In the year 1993, they set up a factory at Samalkha in Haryana. In the year 1995, the
company launched the company's worldwide legendary brand chocolate, Kitkat.

The company commissioned two factories in Goa at Ponda and Bicholim in the year 1995 and
1997 respectively. In the year 1999, the company launched the product, Nestle Growing Up Milk
nationally. In April 2000, they forayed into the Ultra Heat Treated (UHT) liquid milk market. In
the year 2001, the company launched Nestle Pure Life bottled water. Within few months, they
again launched their second water brand-San Pellegrino - in the Indian market. The company
also made their foray into the iced tea segment.

8.Market Share of Company in Industry

9.Porter’s Five Forces Model
10. Recent Trends & Practices
 11. Career Opportunities

The commercial business principles outline the company’s promise to fully support and to
respect a series of principles and international convention regarding employment rights. Nestle
provides working environment which protects the health and welfare of the employees according
to the highest reasonable standard of safety, hygiene and security. Each employee should not
only care for her own safety. Nestle favors a policy of long – term employment. Whenever, an
business cannot be maintained within the nestle specialty, reasonable step will be undertaken to
avoid overall loss of employment by identifying external business willing to take over activity
from nestle.
 12. References
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"Nestlé: The unrepentant chocolatier", The Economist, 29 October 2009. Retrieved 17 May
2012
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McGrath, Maggie (27 May 2016). "The World's Largest Food And Beverage Companies
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"Nestlé tops list of largest food companies in the world". Forbes. Retrieved 26 October
2017.
"Fortune Global 500 List 2017: See Who Made It". Fortune. Retrieved 30 January
2018.
"The World's Biggest Public Companies". Forbes. Retrieved 14 November 2016.
"Nestlé: Tailoring products to local niches" CNN, 2 July 2010.
"Annual Results 2014" (PDF). Nestlé. Retrieved 25 March 2015.
"Nestlé to Decide on L’Oreal in 2014, Chairman Brabeck Says". Bloomberg, 14 April 2011
"The History of Nestlé". Cleverism. 3 September 2015. Retrieved 25 May 2018.
"The Nestlé company history: The pioneer years". www.nestle.com. Nestlé. Retrieved 30
November 2017.
'Other industries', A History of the County of Wiltshire: Volume 4 (1959), pp. 220–253.
Retrieved 14 August 2010
 HPatrick (3 January 2016). "Swiss Chocolate Brands".
Blakely, Joe (2003). "Oregon Places: The Nestlé Condensary in Bandon". Oregon
Historical Quarterly. Oregon Historical Society. 104 (4): 566–577. JSTOR 20615370.
"The Nestlé logo evolution". Nestle.com. Retrieved 25 February 2019.
"Nestlé completes sale of Alcon to Novartis". www.nestle.com. Retrieved 11 July 2019.
"The inside story of the Cadbury takeover". Financial Times.
"Nestlé takes world ice cream lead". BBC News. 19 January 2006. Retrieved 22 February
2007.
"Nestlé completes takeover of Novartis food unit – SWI swissinfo.ch". SWI – the international
service of the Swiss Broadcasting Corporation. 2 July 2007.
"Nestlé to buy Gerber for $5.5B". CNN. 12 April 2007. Archived from the original on 17
April 2007. Retrieved 12 April 2007.